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When a corporation wishes to issue certain securities, it must provide sufficient information for an unsophisticated investor to evaluate the financial risk involved. Specifically, the law imposes liability for making a false statement or omission that is "material." What sort of information would an investor consider material?

Respuesta :

jepessoa

Answer:

Generally unsophisticated investors are concerned with facts that would make them reject buying the stocks or securities specially regarding certain conditions of the corporation, e.g.:

  • changes in dividends policies
  • changes int he corporation's financial condition
  • corporation's liabilities and pending lawsuits
  • loans to managers or directors
  • high amount of customer delinquency
  • new developments or products
  • other important and relevant information